Stock analysis is used by traders to make buy and sell call. It’s an approach to make informed decisions while investing in stocks. Stock analysis can be categorised into – fundamental analysis and technical analysis. Fundamental analysis is evaluation of data from sources, including financial records, economic reports, company assets, and market share. Analysts typically study the company’s financial statements – balance sheet, income statement, cash flow statement, and footnotes. These statements are made available to the investors in the form of quarterly earnings, disclosures to stock exchanges in compliance with the Securities and Exchange Board of India (Sebi) norms. In fundamental analysis, the analysts particularly check for a company's core income, income from other sources, profitability, guidance, assets and liabilities and debt ratio among other parameters. The other method, i.e. the technical analysis focuses purely on statistical data. It works on two assumptions; one, the stock price reflects the fundamentals. Second, the study of past and present movement in prices can help determine the future price trends. Technical analysis primarily deals with price, volume, demand and supply factors. This method is effective only when supply and demand forces influence the market. However, when outside factors are involved in a price movement, technical analysis may not be successful. More
The Nifty 50 is expected to consolidate with a hurdle at 24,200 on the higher side and support at 23,800. Here are some trading ideas for the near term.
Experts expect some consolidation in the key indices and adjustments to continue in individual stocks. For the week ahead, in case of a consolidation, one should focus on stock-specific moves, which will provide excellent trading opportunities, they said.
If Nifty slips below the swing low of 17,216 then 100-DMA will be the next critical support that may coincide with the 17,100 level; below this, major weakness is expected towards the 16,700 level.
The only concern is the banking index, which has shown a relative underperformance. But this index is still in a consolidation phase, and there's a good probability of some buying interest emerging. This would further support the benchmark, says one analyst.
The benchmark indices and broader markets have rallied more than 55 percent from the lows of March 23, though they have been some correction in the last few sessions.
A fall below the 11,500 mark in Nifty futures may lead to some correction up to 11,400 levels on the back of further selling pressure.
Traders can accumulate the stock in a range of Rs 590-600 for the upside target of Rs 655 and a stop loss below Rs 555, says Shitij Gandhi of SMC Global Securities.
These companies, doubled their assets without much leverage and were able to maintain a double-digit sales and profit CAGR.
It is the most asset-light 3PL service provider among listed logistics companies, the research house said, adding the shift towards 3PL is expected to drive growth for Mahindra Logistics.
On a month-on-month (MoM) basis, the weight of PSU Banks, Oil & Gas, Telecom, Consumer, Infrastructure and Real Estate increased, while that of Private Financials, Technology and Metals showed signs of moderation, Motilal Oswal said in a report